In the U.S., which of the following is true about Treasury instruments
A. Their income is not subject to tax at the state level
B. Their income is not subject to tax at the federal level
C. Both A and B are true
D. They are not subject to capital gains tax at the federal level
A
Income from Treasury instruments is not subject to tax at the state level. This is one of the reasons why the yield on Treasuries is lower than the yield on other instruments that have very little credit risk.
You might also like to view...
How much time must be saved to justify a lock-box system that processes 350 cheques per day at an average amount of $400 per cheque if the system will cost $20,000 annually and interest rates average 8 percent?
A) 2.14 days B) 1.79 days C) 7.00 days D) 0.56 days
Which of the following was the primary argument by proponents of agriculture which Alexander Hamilton refuted?
a. The United States had a comparative advantage in agriculture b. The British would prevent the growth of manufacturing in the United States which military force if necessary c. Agriculture had to create economic value which covered the cost of rent of the land while manufacturing did not d. Manufacturing was the workshop of the devil